Skip to main content
logo
  • Funds
    Overview

    Fund Listing

    • Fund Explorer
    • Fund Managers
    • Fund Documents
    • How to Invest

    Capabilities

    • Equities
    • Fixed Income
    • Multi-asset
    • ETF Investing

    Featured Funds

    • Equity Funds
    • JPMorgan Global Income Fund
    • JPMorgan Income Fund
    • Equity Premium Income Active ETFs
  • Insights
    Overview

    Market Insights

    • Market Insights Overview
    • Guide to the Markets
    • Weekly Market Recap
    • On the Minds of Investors
    • Podcasts
    • Multimedia
    • Solving for Income
    • Solving for Fixed Income
    • U.S. Policy Pulse Hub

    Portfolio Insights

    • Portfolio Insights Overview
    • Global Asset Allocation Views
    • Global Fixed Income Views
    • Global Equity Views

    ETF Insights

    • ETF Insights overview
    • Guide to ETFs

    Retirement Insights

    • Guide to Retirement
  • Investment Ideas
    Overview
    • What's new
    • Navigating Volatility
    • Retirement resources
    • Sustainable investing
    • ETF Knowledge
  • Resources
    Overview
    • Announcements
    • Forms & Literature
    • About Mutual Funds
    • Investment Glossary
    • Insights App
  • About Us
    Overview
    • Awards
    • Diversity, Opportunity and Inclusion
    • Our Leadership Team
  • Contact Us
  • Role
  • Country
Search
Menu
Search
You are about to leave the site Close
J.P. Morgan Asset Management’s website and/or mobile terms, privacy and security policies don't apply to the site or app you're about to visit. Please review its terms, privacy and security policies to see how they apply to you. J.P. Morgan Asset Management isn’t responsible for (and doesn't provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the J.P. Morgan Asset Management name.
CONTINUE Go Back
  1. Home
  2. Investment Ideas

A ballast with higher income

To say that bonds have regained relevance in portfolios would be to state the obvious. As the chart on the right shows, current inflation-adjusted yield on the 10-Year US Treasury continues to hover within the highest range in over a decade, following an extended period of low or even negative real yields.

This steep climb can be traced back to the Federal Reserve’s rapid rate hike cycle in 2022-2023, aimed at quelling inflationary pressure. Three years on, nominal yields continue to offset expected inflation, with real yields firmly back in positive territory. As such, the asset class continues to maintain its relevance as an income-generating ballast for portfolios. 

ballast_chart1
Source: Bloomberg, J.P. Morgan Asset Management. Data as of 30.09.2025.

Looking ahead, we believe the fixed income investing landscape remains constructive for several reasons.

1. Yields across multiple bond sectors continue to trade meaningfully above the past 15-year median, presenting attractive opportunities for income generation.

2. Global central banks have shifted into an easing mode, as inflation pressure recedes and growth momentum moderates. Falling rates may enhance the potential for capital gains.

3. Stock-bond correlations have turned negative, particularly as it relates to the shorter-end of the yield curve. This suggests that short duration1 bonds can fulfil its role as a potential ballast for portfolios should downside risks to growth intensify.

Nevertheless, staying active and flexible will be crucial to harness income opportunities across multiple sectors while dynamically managing credit and duration risks amid a fast changing and uncertain macro environment.

For over a decade, the JPMorgan Funds – Income Fund has successfully navigated multiple economic and political cycles, while recording robust returns, attractive income and lower volatility versus global investment grade bonds. Its long track record of actively managing duration exposure may prove valuable in navigating potential downside growth risks and inflation surprises in the current market environment.

ballast_chart2
Source: Bloomberg, FactSet, J.P. Morgan Economic Research, J.P. Morgan Asset Management. Data as of 30.09.2025. Based on: Cash (1-3 Month US Treasury Bills): Bloomberg US Treasury – Bills (1-3 months); US Treasury: Bloomberg Global US Treasury – Bills (3-5 years); US Mortgage Backed Securities (MBS): Bloomberg US Aggregate Securitised – MBS; US Investment Grade (IG): Bloomberg US Aggregate Credit – Corporate IG; USD Asian Bonds: J.P. Morgan Asia Credit Index (JACI); Developed Market Government

Source: Bloomberg, FactSet, J.P. Morgan Economic Research, J.P. Morgan Asset Management. Data as of 30.09.2025. Based on: Cash (1-3 Month US Treasury Bills): Bloomberg US Treasury – Bills (1-3 months); US Treasury: Bloomberg Global US Treasury – Bills (3-5 years); US Mortgage Backed Securities (MBS): Bloomberg US Aggregate Securitised – MBS; US Investment Grade (IG): Bloomberg US Aggregate Credit – Corporate IG; USD Asian Bonds: J.P. Morgan Asia Credit Index (JACI); Developed Market Government Bonds: J.P. Morgan Government Bond Index – Global Traded; US High Yield Bonds: Bloomberg US Aggregate Credit – Corporate High Yield Index; Asia High Yield Bonds: J.P. Morgan Asia Credit High Yield Index; USD Emerging Market Debt: J.P. Morgan Emerging Market Bond Index Global (EMBIG); Local Currency Emerging Market Debt: J.P. Morgan Government Bond Index – EM Global Diversified (GBI-EM Div). Returns are in US dollars. Past performance is not a reliable indicator of current and future results. Provided for information only to illustrate macro trends, information shown is based upon market conditions at the time of the analysis and is subject to change. Not to be construed as offer, research or investment advice.

ballast_chart3
Source: Bloomberg, FactSet, J.P. Morgan Credit Research, J.P. Morgan Asset Management. Data as of 30.09.2025. US Treasuries: Bloomberg US Treasury Index; US IG: Bloomberg US Corporate Index; US MBS: Bloomberg US Mortgage-Backed Securities (MBS) Index; US CMBS: Bloomberg US Investment Grade CMBS Index; US ABS: J.P. Morgan Asset-Backed Securities Index; Europe IG: Bloomberg Euro Aggregate Corporate Bond Index; USD EMD: J.P. Morgan Emerging Market Bond Index (EMBI) Global Diversified Index; Local

Source: Bloomberg, FactSet, J.P. Morgan Credit Research, J.P. Morgan Asset Management. Data as of 30.09.2025. US Treasuries: Bloomberg US Treasury Index;

US IG: Bloomberg US Corporate Index; US MBS: Bloomberg US Mortgage-Backed Securities (MBS) Index; US CMBS: Bloomberg US Investment Grade CMBS Index; US ABS: J.P. Morgan Asset-Backed Securities Index; Europe IG: Bloomberg Euro Aggregate Corporate Bond Index; USD EMD: J.P. Morgan Emerging Market Bond Index (EMBI) Global Diversified Index; Local Emerging Market Debt (EMD): J.P. Morgan GBI-EM Global Diversified Index; EM Corporates (Corp): J.P. Morgan Corporate Emerging Market Bond Index (CEMBI) Broad Diversified Index; Europe HY: Bloomberg Pan European High Yield (HY) Index; US HY: Bloomberg US Corporate High Yield Bond Index. All sectors shown are yield-to-worst. Yield-to-worst is the lowest possible yield that can be received on a bond apart from the company defaulting. Past performance is not indicative of current or future results. Provided for information only to illustrate macro trends, information shown is based upon market conditions at the time of the analysis and is subject to change. Not to be construed as offer, research or investment advice.

ballast_chart4
Source: Bloomberg, J.P. Morgan Asset Management. Data as of 30.09.2025. Provided for information only to illustrate macro trends, information shown is based upon market conditions at the time of the analysis and is subject to change. Not to be construed as offer, research or investment advice.
ballast_chart5
Source: Bloomberg, SIFMA, ICE BofA US HY Index, CS Leveraged Loan Index, JPMorgan, J.P. Morgan Asset Management. Figures reflect the most recently available data as of 30.09.2024. Some components may be lagged. The Bloomberg US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related (govt) and corporate securities, fixed rate agency Mortgage-Backed Securit

Source: Bloomberg, SIFMA, ICE BofA US HY Index, CS Leveraged Loan Index, JPMorgan, J.P. Morgan Asset Management. Figures reflect the most recently available data as of 30.09.2024. Some components may be lagged. The Bloomberg US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related (govt) and corporate securities, fixed rate agency Mortgage-Backed Securities (MBS), Asset-Backed Securities (ABS) and Commercial Mortgage-Backed Securities (CMBS ) (agency and non-agency). Provided for information only to illustrate macro trends, information shown is based upon market conditions at the time of the analysis and is subject to change. Not to be construed as offer, research or investment advice.

ballast_chart6
Source: Bloomberg, J.P. Morgan Asset Management. Data as of 30.09.2025. Volatility is realised annualised volatility based on monthly data since the JPMorgan Funds –Income Fund’s inception on 02.06.2014. Volatility is calculated based on the A (acc) - USD share class. HY: High Yield; IG: Investment Grade; MBS: Mortgage-backed Securities. Indices used are Bloomberg Treasury Index (US Treasuries), Bloomberg Corporate Credit Index (Global IG Corporates), Bloomberg US HY Index (US Corporate High Yie

Source: Bloomberg, J.P. Morgan Asset Management. Data as of 30.09.2025. Volatility is realised annualised volatility based on monthly data since the JPMorgan Funds –Income Fund’s inception on 02.06.2014. Volatility is calculated based on the A (acc) - USD share class. HY: High Yield; IG: Investment Grade; MBS: Mortgage-backed Securities. Indices used are Bloomberg Treasury Index (US Treasuries), Bloomberg Corporate Credit Index (Global IG Corporates), Bloomberg US HY Index (US Corporate High Yield), Bloomberg US MBS Index (MBS), Bloomberg US Aggregate Index (US Aggregate). *US HY Corp is yield to worst, all else is yield to maturity. Yield is not guaranteed and may change over time. Positive yield does not imply positive return. Provided for information only to illustrate macro trends, information shown is based upon market conditions at the time of the analysis and is subject to change. Not to be construed as offer, research or investment advice.

Our Featured Funds

See all funds
JPMorgan Asset Management

  • Terms of Use
  • Privacy Statement
  • Cookies Policy
  • Investment stewardship
  • Sitemap
J.P. Morgan

  • J.P. Morgan
  • JPMorgan Chase
  • Chase

The information contained herein is intended only for use by Singapore residents. By using this information, you are representing and warranting that you are either residing in Singapore or the applicable laws and regulations of your jurisdiction allow you to access the information, and you confirm that you accept the Terms of Use as set out in https://www.jpmorgan.com/sg/am/per/. Investment involves risk. Past performance is not indicative of future performance. In particular, funds which are invested in emerging markets and smaller companies may involve a higher degree of risk and are usually more sensitive to price movements. Investors should carefully read and consider the fund offering document(s), which contain details on investment objectives, risk factors, charges and expenses of the fund, before making any investment decisions. Information in this website does not constitute investment advice, or an offer to sell, or a solicitation of an offer to buy any security, investment product or service, nor a distribution of information for any such purpose. Informational sources are considered reliable but you should conduct your own verification of information contained herein. Issued by JPMorgan Asset Management (Singapore) Limited. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore (“MAS”).

 

JPMorgan Asset Management (Singapore) Ltd is regulated by the Monetary Authority of Singapore. (Co. Reg. No. 197601586K)